Mileage Expenses LP

Claiming tax back for fuel or business mileage or any motoring expenses while employed (under PAYE) because you are using your own vehicle at work can lead to some considerably large tax rebates. (This section does not refer to people who are self employed). This is quite a complex area so it’s better that you […]

Claiming tax back for fuel or business mileage or any motoring expenses while employed (under PAYE) because you are using your own vehicle at work can lead to some considerably large tax rebates. (This section does not refer to people who are self employed).

This is quite a complex area so it’s better that you discuss your circumstances free of charge with one of our specialist consultants so we can assess your case. Fill in our online application to talk to one of our tax experts.

Here are a few key points to remember to see if you may have a valid claim or not:

  • The motoring costs in question must be entirely associated with business, not personal journeys (otherwise it’s fraud!)
  • Your contract of employment should indicate if you are expected to use your own vehicle in relation to your work duties
  • The business travels must be necessary for you to do your job
  • You need to have incurred the costs in question
  • Your employer did not reimburse you, in part, or in full
  • Claiming costs associated with normal commuting is not allowed by HMRC.

To put it plainly, you cannot claim back any expenses associated with normal commuting to and from your registered place of work, as defined by your contract of employment. If like millions of people you have to incur costs to go to work (i.e. Bus or train fares; Car park & toll charges; Fuel costs because you commute by car or motorcycle) then it is the taxman’s view that you accepted the job as it is and therefore it is your responsibility to assume these costs, not the tax payers’.

Who can claim a mileage tax rebate?

Typically, employees who need to use their own vehicle to visit multiple sites or clients or patients (however, we have dealt with genuine cases where employees used a company car but their employer did not reimburse them at all or in full for the fuel costs or car park & toll charges related to their business travels – If this is your case, contact us so we can help you). A non-exhaustive list of professions may include:

  • Care workers or healthcare workers who need to visit patients
  • Some NHS doctors or nurses who may need to visit multiple sites
  • Construction workers or site managers who have to travel from site to site
  • IT managers who need to visit clients or multiple site
  • Some sales representatives who need to visit clients or attend meetings

The typical motoring expenses for which they could normally claim tax relief may include:

  • Fuel costs
  • Road Tax
  • Vehicle Insurance
  • Servicing & Repair Charges
  • Parking & Toll Costs
  • Breakdown & Roadside assistance cover

There are two different ways of claiming tax relief for these expenses. Our expert tax consultants at TaxRefundPro will be able to tell you which method is more profitable to you, according to your own personal circumstances.

The first way is to produce receipts or bank statements, in order to prove to the taxman that you really incurred these expenses. If you are also using your vehicle for personal purposes, you will need to indicate the ratio for business use only i.e. 40% of my vehicle use is business-related (and therefore claimable as tax relief, which in turn means that only 40% of your expenses would be considered for tax relief).

The other and easier method is to produce a detailed mileage log. You can download an example here. Using a mileage log is an ideal way to claim tax relief if you don’t have receipts/bank statements to prove that you have incurred costs in relation to business travels while using your own vehicle for work. The standard mileage allowance rate is currently set at 45p per mile for the first 10,000 miles within the same tax year (from April until the following April), and then at 25p for any mile above 10,000. This amount is designed to compensate employees who use their own vehicle for work purposes, not only for fuel expenses, but for all other costs associated with running a vehicle i.e. Car insurance; Depreciation of the vehicle; MOT & repairs; etc… If your employer already reimbursed you, but at a rate under 45p per mile, you may still be able to claim back the difference. For example if your employer pays you 25p per mile, you may be able to claim back the additional 20p per mile.

Ideally, you should already be in the habit of listing your business travels, then it would make things much easier when you come to make a claim instead of having to remember where and when you went a year ago! If you have never completed a mileage log, don’t worry, we’ll be happy to advise you on the best way to go about it.

Fill in our online application to talk to one of our tax experts today and see how much you could be owed.

Our simple three-step process

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Step 1

Get in touch

Fill out our online form or give us a call. We just need some basic information like your employment history.

Step 2

Get an estimate

We'll give you an estimate on how much you might be due, and let you know how we can help you get it all back.

Step 3

Get paid

We will apply for your refund and do all the legwork with chasing up HMRC on the status of your application.